The Labuan Financial Services Authority published the Labuan International Business and Financial Centre (Labuan IBFC) Market Report 2025, setting out growth in market participation, assets and capitalisation across banking, insurance, capital markets and niche segments such as captive insurance, Islamic finance and wealth management. The report also points to Labuan IBFC being assessed favourably in Malaysia’s Financial Action Task Force (FATF) mutual evaluation and records the Centre’s debut in the Global Financial Centres Index. New company incorporations and registrations increased by 5.1% and 41 new licences were issued, taking the total to 808 licensed entities and 4,971 operating companies. Total industry assets rose 13% to USD94 billion and capitalisation increased 32.3% to USD22.5 billion. In banking, sector profitability rose 55.3% to USD665.7 million, while lending to financial services increased 36.9%; Islamic banking assets expanded 35.2% to USD2.2 billion, with Islamic financing up 23.4% to USD1.65 billion and Islamic deposits up 17.7% to USD231.8 million. In insurance, gross premiums rose 5.8% to USD2.5 billion and profitability increased 7.1% to USD434.7 million, while net retention reached 62.7% and captive premiums grew 7.2% to USD726 million. Capital markets coverage includes the world’s first RMB200 million Climate Sukuk; fund managers’ assets under management increased 9.4% to USD1.2 billion and segment profitability rose 143% to USD10.5 million. Wealth management metrics include new Labuan foundations up 29% to 263 and foundations’ assets under management up 12% to USD802 million; leasing recorded USD1.8 billion of new assets leased (64.2% from aviation) with revenue of USD1.2 billion and profitability of USD597 million. For 2026, the report sets priorities to intensify market development and innovation (including digital finance, Islamic finance and insurance), strengthen regulatory frameworks for the takaful, banking and trust company sectors and enhance AML/CFT regulations in line with mutual evaluation recommendations, and improve operational efficiency through upgraded digital platforms and supervisory and compliance oversight systems.
Labuan Financial Services Authority 2026-04-28
Labuan Financial Services Authority releases Labuan IBFC Market Report 2025 with assets up 13% to USD94 billion
The Labuan Financial Services Authority’s Labuan International Business and Financial Centre Market Report 2025 highlights broad-based growth in banking, insurance, capital markets, Islamic finance and wealth management, supported by a favourable FATF mutual evaluation and the Centre’s debut in the Global Financial Centres Index. Total industry assets rose 13% to USD94 billion and capitalisation increased 32.3% to USD22.5 billion, with gains in banking profitability, Islamic banking assets, insurance premiums and captive business, fund managers’ and foundations’ assets under management. Priorities for 2026 include market development and innovation, stronger takaful, banking and trust regulation, enhanced AML/CFT rules, and upgraded digital and supervisory systems.